Investing.com - The Australian dollar slumped against its U.S. rival during Tuesday’s Asian session despite the Reserve Bank of Australia opting against another interest rate cut at its meeting today.
In Asian trading Tuesday, AUD/USD slid 0.15% to 1.0424. That took the pair below support at 1.025. Next resistance is seen at 1.0445.
Heading into the RBA meeting, traders were split regarding the potential for another rate cut, though more traders seemed to be of the mind that the central bank would opt to hold rates at 3% for now while looking to cut rates again later this year. RBA has slashed Australia’s benchmark interest by 175 basis since late 2011.
AUD/USD appeared to be hampered by another round of concerning economic data from the world’s twelfth-largest economy. On Monday, official data showed that building approvals in Australia dropped 4.4% in December, disappointing expectations for a 1% rise, after a 3.4% increase the previous month.
A separate report showed that job advertisements in Australia fell 0.90% in January, following a 2.80% decline the previous month.
Earlier today, the Australian Bureau of Statistics said that Australia’s January trade balance rose to a seasonally adjusted AUD -0.43billion from AUD-2.79billion in December. Analysts expected a January reading of AUD-0.80B.
In better news, the Australian Bureau of Statistics said that Australian house price index climbed to 1.6% in the fourth quarter from -0.1% in the third quarter. Analysts expected a fourth-quarter reading of 0.3%.
Recently, Australian Prime Minister Julial Gillard urged RBA to continue lowering rates while admitting there was little the government could do to stem the tide of the rising Aussie.
Meanwhile, AUD/JPY plunged 0.39% to 96.06 while EUR/AUD surged 0.26% to 1.2981. AUD/NZD slumped 0.21% to 1.2351.
In Asian trading Tuesday, AUD/USD slid 0.15% to 1.0424. That took the pair below support at 1.025. Next resistance is seen at 1.0445.
Heading into the RBA meeting, traders were split regarding the potential for another rate cut, though more traders seemed to be of the mind that the central bank would opt to hold rates at 3% for now while looking to cut rates again later this year. RBA has slashed Australia’s benchmark interest by 175 basis since late 2011.
AUD/USD appeared to be hampered by another round of concerning economic data from the world’s twelfth-largest economy. On Monday, official data showed that building approvals in Australia dropped 4.4% in December, disappointing expectations for a 1% rise, after a 3.4% increase the previous month.
A separate report showed that job advertisements in Australia fell 0.90% in January, following a 2.80% decline the previous month.
Earlier today, the Australian Bureau of Statistics said that Australia’s January trade balance rose to a seasonally adjusted AUD -0.43billion from AUD-2.79billion in December. Analysts expected a January reading of AUD-0.80B.
In better news, the Australian Bureau of Statistics said that Australian house price index climbed to 1.6% in the fourth quarter from -0.1% in the third quarter. Analysts expected a fourth-quarter reading of 0.3%.
Recently, Australian Prime Minister Julial Gillard urged RBA to continue lowering rates while admitting there was little the government could do to stem the tide of the rising Aussie.
Meanwhile, AUD/JPY plunged 0.39% to 96.06 while EUR/AUD surged 0.26% to 1.2981. AUD/NZD slumped 0.21% to 1.2351.